Kathmandu— China’s central bank, the People's Bank of China (PBOC), announced on Sunday that it plans to implement a moderately loose monetary policy and strengthen counter-cyclical adjustments in the second half of 2026. The PBOC aims to enhance financial support for the real economy by maintaining ample liquidity and guiding financial institutions to balance credit supply.

Monetary Policy Adjustments

The PBOC stated that it will comprehensively utilize monetary policy tools, adjusting them as necessary to ensure alignment with economic growth targets. This includes maintaining sufficient liquidity in the market and guiding financial institutions to enhance credit supply balance. The goal is to align the growth of social financing and money supply with expected targets for economic growth and overall price levels.

Supporting Innovation and SMEs

The PBOC also emphasized its commitment to promoting high-quality development in the technology sector within the bond market. It plans to steadily implement risk-sharing instruments for technological innovation and private-enterprise bonds, aiming to explore information sharing and integrated data application in the science and technology finance sector. Additionally, the central bank will improve credit enhancement systems for private enterprises and SMEs, enhancing financial service capabilities for these entities.

(With inputs from Xinhua)

Originally published on abcnews.com.np.